Although not the sexiest of topics, avoiding taxation trouble in your advertising agency should be on your priority list.
Businesses grow in the same fashion as a spider web. Each section is added one at a time to form a circle, and then each section is expanded on again to form a greater one. If only one part of the web was worked on it would ultimately collapse. Focusing on just one area of your business, be it sales, administration, strategy etc will also create a very lop sided business and can ultimately lead to business failure. Getting on top of your taxation is a necessary component of the good management of your advertising agency.
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Accounting For Advertising Agencies
Here are 3 simple tips that will help your advertising agency become stronger by increasing your tax management skills.
Be Accounting Organised
Always keep organised and up to date with your bookkeeping. Never let is slide.
- Have a good bookkeeper working for you if you don’t enjoy doing it yourself.
- Make sure you have a great record keeping system and paper filing system for your receipts, so if you do get audited, you are covered.
- Pay your staff’s salary and super on time, and keep your taxes up to date and lodged on time.
Listen To Your Accounting Advisors
Business accountants will be best placed to advise your ad agency whether you should be claiming something. If in doubt, go the straight path - you will sleep a whole lot better, and your business will thrive more. Ask in advance of a purchase if it is a major one, there could be a better way to structure the transaction from a tax perspective.
Tax Planning
Make sure you go to your accountant before the end of the financial year to make sure you have done everything you can to minimise your personal tax and your ad agencies. Although some years you may do nothing, and you may feel that the money wasn’t a wise investment, in other years you may discover something and recoup those costs and be a long way ahead.
Hillyer Riches is a specialist accounting, business advisory and superannuation firm located in Melbourne - they specialise in Accounting For Ad Agencies. For more information email travis@hillyerriches.com.au
This article is for general information only and should not be relied upon without first seeking advi
